Bangladesh to Sign Comprehensive Economic Partnership Agreement with South Korea on August 4

Dhaka, July 31, 2026 — Bangladesh and South Korea are set to sign a landmark Comprehensive Economic Partnership Agreement (CEPA) in Dhaka on Tuesday, August 4, 2026, as Bangladesh accelerates efforts to secure duty-free market access ahead of its graduation from the least developed country (LDC) category. 🤝 The agreement marks Bangladesh's second full-fledged trade agreement, following the Economic Partnership Agreement (EPA) with Japan signed on February 6, 2026.

🏛️ Commerce Minister Khandakar Abdur Muktadir confirmed the development, telling The Daily Star: "We are going to sign the trade agreement with Korea in Dhaka on August 4." The minister did not elaborate further, but officials at the commerce ministry indicated that the agreement is expected to deepen bilateral trade, attract South Korean investment, and expand cooperation in services between Dhaka and Seoul. 📋

💰 Investment Focus and Market Access

📊 Officials revealed that Bangladesh has mainly focused on attracting more South Korean investment under the CEPA, rather than just tariff concessions. A senior commerce ministry official, requesting anonymity, explained:

"Bangladesh has mainly focused on attracting more South Korean investment under the CEPA. Most Bangladeshi products, including garments, are expected to receive duty-free access to the South Korean market under the trade in goods chapter."

👕 For Bangladesh's readymade garment (RMG) sector — which accounts for over 80 percent of the country's merchandise exports — duty-free access to South Korea represents a significant opportunity. South Korea is a major importer of textiles and apparel, and Bangladeshi manufacturers have been seeking preferential access to compete with suppliers from Vietnam, China, and other Asian competitors. 🌏

📅 Negotiation Status and Rules of Origin

🔍 A Bangladeshi negotiating team is currently in Seoul and expects to conclude the final round of talks on Friday, July 31. Negotiators have already agreed on the critical Rules of Origin framework, with only a few remaining issues to be settled before the agreement is finalised. Rules of Origin determine which products qualify for preferential tariff treatment and are often the most contentious element of trade negotiations. ✅

🇯🇵 Following the Japan EPA Model

💡 Bangladesh has broadly followed the model of its EPA with Japan in structuring the CEPA with South Korea. Under the Japan EPA:

• 🇯🇵 Japan committed to expanding investment in Bangladesh
• 📦 Japan granted duty-free access to almost all Bangladeshi goods
• 🤝 The agreement included services cooperation and investment protection
• 📊 Technical assistance and capacity building provisions were included

The CEPA with South Korea is expected to follow a similar structure, with additional emphasis on technology transfer and manufacturing investment given South Korea's strength in electronics, automotive, and advanced manufacturing. 🏭

🌍 Strategic Context: Preparing for LDC Graduation

📈 Bangladesh has stepped up efforts to secure comprehensive trade agreements as it prepares for life after LDC graduation. Once Bangladesh graduates from LDC status — projected for 2026 — it will lose preferential market access under various international trade frameworks, including duty-free quota-free access to certain developed markets. 🎯

📋 According to the Bangladesh Economic Review 2025, the country currently trades under a mix of bilateral and regional arrangements, including:

• 🇧🇹 Preferential Trade Agreement (PTA) with Bhutan — Bangladesh's first bilateral PTA
• 🌏 South Asian Free Trade Area (SAFTA) — regional arrangement
• 🇯🇵 EPA with Japan — signed February 2026
• 🇰🇷 CEPA with South Korea — to be signed August 4, 2026

💼 What This Means for Bangladesh Exporters

🚀 The CEPA with South Korea is expected to deliver several concrete benefits for Bangladeshi exporters and the broader economy:

• 💸 Duty-free garment access to South Korea's $17 billion apparel import market
• 🏭 Increased South Korean FDI in manufacturing, particularly textiles and electronics
• 🔧 Technology transfer from Korean conglomerates (chaebols)
• 📦 Diversified export markets reducing dependence on EU and US
• 🤝 Services trade cooperation opening new sectors beyond manufacturing
• 📊 Supply chain integration with Korean global value chains

🔮 Looking Ahead

📝 Following the August 4 signing, both countries will need to complete domestic ratification processes before the CEPA enters into force. Industry leaders and trade analysts have welcomed the agreement, noting that Bangladesh must continue pursuing similar pacts with other major trading partners — including the European Union, United Kingdom, and United States — to maintain export competitiveness in the post-LDC era. 🌐

🇰🇷 South Korea is currently Bangladesh's 12th largest export destination, with bilateral trade volumes expected to grow significantly once the CEPA's tariff reductions take effect. The agreement signals a new chapter in Bangladesh-South Korea economic relations, building on decades of development cooperation and growing commercial ties. 📈